Answer:
Annual deposit= $5,539.52
Explanation:
First, we need to calculate the total worth of the 4 years tuition 18 years from now:
FV= PV*(1+i)^n
Year 1= 20,000*1.05^18= 48,132.39
Year 2= 48,132.39*1.05= 50,539
Year 3= 50,539*1.05= 53,065.95
Year 4= 53,065.95*1.05= 55,719.25
Total FV= $207,456.59
Now, using the following formula we can determine the annual deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (207,456.59*0.08) / [(1.08^18) - 1]
A= $5,539.52
Ben and Mildred's Stables used two different independent variables (trainer hours and number of? horses) in two different equations to evaluate the cost of training horses. The most recent results of the two regressions are as follows:
Trainer's hours: Variable Coefficient Standard Error t-Value Constant $1,005.45 $217.52 4.61 Independent Variable $22.54 $3.23 7.40 r2 = 0.56 Number of horses: Variable Coefficient Standard Error t-Value Constant $5,240.20 $1,180.32 4.44 Independent Variable $22.54 $3.23 4.75 r2= 0.63
What is the estimated total cost for the coming year if 14,700 trainer hours are incurred and the stable has 310 horses to be trained, based upon the best cost driver?
A. $13,995,671.20
B. $7,992.85
C. $332,343.45
D. $300,276.50
Answer:
the estimated total cost for the coming year is $12,227.60
Explanation:
The computation of the estimated total cost is shown below:
y
= Constant coefficient + independent variable coefficient × number of horses
= $5,240.20 + $22.54 × 310 horses
= $5,240.20 + $6,987.40
= $12,227.60
This is the answer but not the same is to be given in the options
hence, the estimated total cost for the coming year is $12,227.60
Assume the bondâs quoted ("clean") price is $1,044.56, the bond has the coupon rate of 8.1% and that the coupons are paid semiannually. Further assume that the bond has the face value of $1,000. What is the bondâs invoice ("dirty") price if the last coupon payment took place four months ago?
Answer:
$1,071.56
Explanation:
Calculation for the
Clean price is the bond's invoice ("dirty") price
Using this formula
Dirty price= Clean price + ( Face value × Coupon rate × No. of months ÷ Total number of months in a year)
Let plug in the formula
Dirty price=$1,044.56 +($1,000 × 8.1% × 4 ÷ 12)
Dirty price= $1,044.56 + $27
Dirty price= $1,071.56
Therefore the bond's invoice ("dirty") price will be $1,071.56
Given aggregate supply, when there is an increase in aggregate demand, it leads to
Answer:
demand pull inflation is the answer
Which statement best compares these two loans?
Loan A
Loan B
O The annual percentage rate for loan A is higher
than the rate for loan B
Loan
amount
$15,000
$10,000
O The interest for loans A and B will cost the borrower
the same amount over time.
APR
17%
19%
O The interest is about half the principal for A and
almost equal to the principal for B.
The total payment for A is higher than for B, even
though the principal is actually lower
Loan
repayment
term
5 years
5 years
Total
interest
paid
$7,367.32
$9,857.02
) Intro
Done
Based on the given information, it seems that Loan A has a lower principal amount ($15,000) compared to Loan B ($10,000). However, Loan A has a higher annual percentage rate (APR) of 17% compared to Loan B's 19% APR.
What are the basis of Loan comparison ?This means that over the course of the loan term, the borrower will end up paying more interest for Loan B, making the total payment for Loan B higher than Loan A.
In terms of the interest, it appears that for Loan A, the interest is about half the principal amount, whereas for Loan B, the interest is almost equal to the principal amount. This indicates that Loan B may be more expensive in terms of interest costs.
Despite Loan A having a lower principal amount, the total interest paid for Loan A is $7,367.32, which is lower than the total interest of $9,857.02 for Loan B. This suggests that Loan A may be a better option for the borrower, as it would result in lower overall costs over the loan term.
Overall, the comparison between Loan A and Loan B highlights the importance of considering both the interest rate and the principal amount when evaluating loan options.
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Production Budget
Pasadena Candle Inc. projected sales of 72,000 candles for January. The estimated January 1 inventory is 3,600 units, and the desired January 31 inventory is 7,000 units. Prepare a production budget report in units for Pasadena Candle Inc.
Pasadena Candle Inc.
Production Budget
For the Month Ending January 31
Expected units to be sold 800,000
Desired ending inventory, December 31 20,000
Total units available 350,000
Estimated beginning inventory, January 1 35,000
Total units to be produced 785,000
Answer and Explanation:
The preparation of the production budget is presented below:
Production budget
Expected units to be sold 800,000
Add: Desired ending inventory, December 31 20,000
Total units available 820,000
Less: Estimated beginning inventory, January 1 -35,000
Total units to be produced 785,000
We simply added the ending inventory and deduct the beginning inventory to the units sold
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:
Activity Centers Cost Drivers Rate per Cost Driver Unit
Materials handling Pounds of material handled $17 per pound
Quality inspections Number of inspections $210 per inspection
Machine setups Number of machine setups $2,600 per setup
Running machines Number of machine-hours $22.00 per hour
Direct materials costs were $300,000 and direct labor costs were $150,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 790 inspections, had 50 setups, and ran the machines for 16,000 hours.
Required:
Use T-accounts to show the flow of materials, labor and overhead costs from the tour overhead activity centers through Work in Process Inventory and out to Finished Goods Inventory.
Answer:
Southwest Components
T-accounts:
Raw materials Inventory
Date Accounts Titles Debit Credit
July 31 Cash $300,000
July 31 Work in Process $300,000
Wages & Salaries Account
Date Accounts Titles Debit Credit
July 31 Cash $150,000
July 31 Work in Process $150,000
Manufacturing Overhead
Date Accounts Titles Debit Credit
July 31 Cash $714,200
July 31 Work in Process $714,200
Work in Process Inventory
Date Accounts Titles Debit Credit
July 31 Raw materials $300,000
July 31 Wages & Salaries 150,000
July 31 Overhead 714,200
July 31 Finished Goods Inventory $1,164,000
Finished Goods Inventory
Date Accounts Titles Debit Credit
July 31 Work in Process $1,164,000
Explanation:
a) Data and Calculations:
Activity Centers Cost Drivers Rate per Cost Driver Unit
Materials handling Pounds of material handled $17 per pound
Quality inspections Number of inspections $210 per inspection
Machine setups Number of machine setups $2,600 per setup
Running machines Number of machine-hours $22.00 per hour
Direct materials costs = $300,000
Direct labor costs = $150,000
Pounds of materials = 3,900
Inspections = 790
Setups = 50
Machine usage = 16,000 hours
b) Manufacturing Overhead costs, based on ABC:
Items Per unit cost Units Total cost
Materials handling $17 per pound 3,900 $66,300
Quality inspections $210 per inspection 790 165,900
Machine setups $2,600 per setup 50 130,000
Running machines $22.00 per hour 16,000 352,000
Total manufacturing overhead costs $714,200
b) It is assumed that there are no beginning and ending inventories.
Luther Industries has no debt, a total equity capitalization of $20 billion, and a beta of 1.8. Included in Luther's assets are $4 billion in cash and risk-free securities. What is Luther's enterprise value?
Answer:
2400000000
Explanation:
Luther's enterprise value will be $16 billion.
The following information can be depicted from the question given:
Total equity capitalization = $20 billionBeta = 1.8It should be noted that an enterprise value is the difference between the market value and cash. Therefore, the enterprise value will be:
= $20 billion - $4 billion
= $16 billion.
In conclusion, Luther's enterprise value will be $16 billion.
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Marigold Corp. purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of $86000. The December 31, 2020 adjusting entry is:____.a) debit Interest Expense and credit Interest Payable, $5,400.
b) debit Interest Expense and credit Interest Payable, $900.
c) debit Interest Expense and credit Interest Payable, $1,350.
d) debit Interest Expense and credit Cash, $900.
The options provided in the question are incorrect.
Answer:
31 Dec 2021
Interest expense 1290 Dr
Interest Payable 1290 Cr
Explanation:
Under the accrual basis or principle of accounting, we match the revenue with the expenses and record the transactions in the period to which they relate to rather than when the cash is paid or received. This means that the interest payment that is accrued for time period relating to this year should be recorded as an expense in the current period and as a liability as it will be paid in the next period. Thus, the interest on the note relating to 2 months from November 2020 to December 2020 will be recorded as follows,
Interest expense = 86000 * 0.09 * 2/12 = 1290
31 Dec 2021
Interest expense 1290 Dr
Interest Payable 1290 Cr
Flounder Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $434,700. The estimated fair values of the assets are land $82,800, building $303,600, and equipment $110,400. At what amounts should each of the three assets be recorded?
Answer:
ok
I thinks it's ok because it's ok you get me
Use the information for the question(s) below. Rosewood Industries has EBIT of $450 million, interest expense of $175 million, and a corporate tax rate of 35% If Rosewood had no interest expense, its net income would be closest to:___________ a. $430 million b. $160 million c. $290 million d. $405 million
Answer:
$180 million
Explanation:
Net income is calculated as;
= (EBIT - Interest expense)(1 - tax)
Given that;
EBIT = $450 million
Interest expense = $175 million
Tax = 35%
Net income = (450 - 175)(1 - 0.35)
Net income = (275)(0.65)
Net income = $178.75
Net income = $180 million approximated.
Rosewood's net income is closest to $180 million.
Christine and Doug are married. In 2014, Christine earns a salary of $250,000 and Doug earns a salary of $50,000. They have no other income and work for the same employers for all of 2014. How much Medicare surtax for high-income taxpayers will Christine and Doug have to pay with their 2014 income tax return?
A. $450 B. $900 C. $2,700 D. None
Answer:
A. $450
Explanation:
In 2014, the Medicare surtax for high-income taxpayers started when married couples filing jointly earned over $250,000. in this case, Christine and Doug made $300,000, so the surtax = ($300,000 - $250,000) x 0.9% = $450
The Medicare surtax income threshold has not been adjusted to inflation and remains at the same level for 2020.
Total medicare contributions for high income taxpayers = 1.45% + 0.9% = 2.35%
The Fremont Company uses the weighted-average method in its process costing system. The company recorded 43,500 equivalent units for conversion costs for November in a particular department. There were 7,400 units in the ending work-in-process inventory on November 30, 80% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 9,400 units, 50% complete with respect to conversion costs. A total of 39,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:________
Answer:
37,000 units
Explanation:
Calculation for the number of units started during November in the department
Using this formula
Number of Units started = Units completed and transferred out + Units in ending work-in-process − Units in beginning work-in-process
Let plug in the formula
Number of Units started= 39,000 units+7,400 units − 9,400 units
Number of Units started= 37,000 units
Therefore number of units started during November in the department was 37,000 units
What budgeting style is used by Ford Motor company?
Answer:
Marketing
Explanation:
XYZ company is analyzing a proposed project. The company expects to sell 1,500 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?
Answer:
$922,557.30
Explanation:
Sales revenue = Quantity sold * Price
a. Worst case quantity = 1500*97% = 1455
b. Worst case price = 647*98% = $634.06
Sales revenue under worst case = 1455*$634.06
Sales revenue under worst case = $922,557.3
A company had inventory on July 1 of 5 units at a cost of $16 each. On July 2, they purchased 9 units at $28 each. On July 6 they purchased 5 units at $25 each. On July 8, 8 units were sold for $58 each. Using the LIFO periodic inventory method, what was the value of the inventory on July 8 after the sale?
Answer:
$248
Explanation:
The LIFO inventory method implies that the inventory that was purchased last would be the first to be sold.
Here, we would compute the inventory units as seen below;
= 5 units + 9 units + 5 units - 8 units
= 11 units
Now, the value of inventory is;
= 5 units × $16 + 6 units × $28
= $80 + $168
= $248.
The 6 units come from
= 11 units - 5 units
= 6 units.
Therefore, the value of inventory is $248.
Leilei operates a sole proprietorship, using the accrual basis of tax accounting. Last year, she claimed a $30,525 bad debt deduction for a receivable from Jackie. But this year, Jackie sent her a check for $21,368, which Leilei accepted in full satisfaction of the receivable. How much gross income does Leilei record for the item this year?
Answer:
She will include $21,368 in her gross income
Explanation:
Under the tax benefit rule, any amount claimed as a deduction in prior years and recovered in subsequent periods must be recognized as income in the year in which such amount is recovered. So Leilei must record the subsequent recovery of bad debts $21,368 as gross income.
Rajiv lives in Houston and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Rajiv does not operate this piano business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this piano business.
a. What are Rajiv's explicit costs of selling pianos?
1. The salary Rajiv could earn if he worked in an accounting firm.
2. The wages and unitilty bills that Rajiv pays.
3. The wholesale cost for pianos that Rajiv pays the manufacturer.
4. The rental income Rajiv could receive per year if he chose to rent his showroom out.
b. What is the accounting profit of Rajiv's piano business?
1. $780,000
2. $65,000
3. $40,000
4. $-40,000 ($40,000 accounting loss)
5. $110,000
c. What is the economic profit of Rajiv's piano business?
a. $65,000
b. $40,000
c. $780,000
d. $-40,000 ($40,000 economic loss)
e. $110,000
Answer and Explanation:
The computation is shown below:
a. The explicit cost of selling pianos would involve the wages & salaries expense and the wholesale cost that he pays the manufactured. These are considered as actual and would be added in the accounting
b. The accounting profit would be
Accounting profit is
= revenue - explicit cost
= $851,000 - $476,000 - $281,000
= $94,000
this is the answer and the options that are given are wrong
c. The economic profit would be
= Accounting profit - opportunity cost
= $94,000 - $34,000 - $71,000
= -$11,000
this is the answer and the options that are given are wrong
Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Trueman Corporation issued $600,000 of 20-year, 11% bonds for $554,861, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31.
(a) Confirm the bond issue price. Round answers to the nearest whole number.
Present value of principal repayment Answer
Present value of interest payments Answer
Selling price of bonds $ 554,861
(b) Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and discount amortization on June 30, and (3) semiannual interest payment and discount amortization on December 31 of the current year. Round answers to the nearest whole number. Use negative signs with answers, when appropriate.
Balance Sheet
Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
(1) Answer Answer
1.00 points out of 1.00
Answer Answer Answer
(2) Answer Answer Answer Answer Answer
(3) Answer
0.00 points out of 1.00
Answer Answer Answer Answer
0.00 points out of 1.00
Income Statement
Revenue
-
Expenses
=
Net Income
Answer Answer Answer
Answer Answer Answer
0.00 points out of 1.00
Answer Answer Answer
Answer:
a) the issue price of the bonds was $554,861:
PV of face value = $600,000 / (1 + 6%)⁴⁰ = $58,333
PV of coupon payments = $33,000 x 15.046 (PV annuity factor, 6%, 40 periods) = $496,518
market price = $554,851 which is close enough to verify the issue price (the $10 difference is probably due to a rounding error).
b) the journal entries are:
January 1, year 1
Dr Cash 554,861
Dr Discount on bonds payable 45,139
Cr Bonds payable 600,000
June 30, year 1
Dr Interest expense 33,292
Cr Cash 33,000
Cr Discount on bonds payable 292
amortization of discount of bonds payable = ($554,861 x 6%) - $33,000 = $291.66 ≈ $292
December 31, year 1
Dr Interest expense 33,309
Cr Cash 33,000
Cr Discount on bonds payable 309
amortization of discount of bonds payable = ($555,153 x 6%) - $33,000 = $309.18 ≈ $309
Assets = Liabilities + Equity
Cash Bonds payable Discount on BP
554,861 600,000 (45,139)
(33,000) 292 (33,292)
(33,000) 309 (33,309)
Revenues - Expenses = Net income
0 0 0
0 33,292 (33,292)
0 33,309 (33,309)
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 33,000 shares authorized, 16,800 shares issued, and 13,200 shares of common stock outstanding. The journal entry to record the dividend declaration is:
Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If price decreases from $9 to $8 then the consumer surplus from this unit will increase by___. The consumer surplus is calculated as the marginal benefit or the value of the good minus its price, then summed over the quantity bought. If the price is $9, there are only 3 people (George, Glen, and Tom) who would buy the goods. Since Peter wants to pay $8, he will not buy this good since its price ($9) is higher than his willingness to pay. The consumer surpluses for George, Glen, and Tom are $6 (=15 - 9), $3 (=12 - 9), and $1 (=10 - 9), respectively. The total consumer surplus would be $10 (= 6 + 3 + 1). If the price is $8, all of them would be willing to buy the goods. The consumer surpluses for George, Glen, Tom, and Peter are $7 (=15 - 8) $4 (=12 - 8), $2 (=10 - 8), and $0 (=8 - 8), respectively. The total consumer surplus would be $13 (= 7 + 4 + 2). Thus, if price decreases from $9 to $8 then the consumer surplus from this unit will increase by $3. If the price increases from $9 to $11, what would be the decrease in consumer surplus?
Answer:
If price decreases from $9 to $8 then the consumer surplus from this unit will increase by $3.
Explanation:
total consumer surplus = ($15 + $12 + $10 + $8) - (4 x $8) = $45 - $32 = $13. Consumer surplus is the difference between the maximum amount that consumers are willing to pay for a good or service, and its actual price.
when the price was $9 per unit, total consumer surplus = ($15 + $12 + $10) - (3 x $9) = $37 - $27 = $10.
that means that consumer surplus increased by $13 - $10 = $3
Summarize the ways through which sales and operations planning can be integrated. Then, extend your findings to additional supply chain management processes that you feel could be better integrated. Which two (or more) processes did you integrate? Why and how?
Answer:
Sales and Operation Planning is integrated to achieve business goals. The executives and business managers will be able to focus on achievement of company goals.
Explanation:
Sales and operations planning integration is a key function for any business. The leadership management is able to focus on strategic planning based on demand and supply of the products. They are able to improve their forecasting and bring accuracy in budgeting. Companies are able to improve their business profits based on integrated planning.
QUESTION 15
Which grouping represents all non profit organizations?
United Way, Red Cross NAACP
Caesars, Bally, Borgota and Boys & Girls Clubs
Nike, Nordstrom, Kohls and Kelloggs
Feed America, Dress for Success, American Civil Liberties Union and McDonalds
Answer:
United Way, Red Cross, NAACP
Explanation:
A nonprofit organization is an organization that aims to bring collective, public, or social benefits, unlike a business that aims to earn a profit for its owners. Examples of nonprofit organizations are United Way, Red Cross, and NAACP.
United Way is a nonprofit organization based in Virginia that works with almost 1,200 offices throughout the US in a coalition of charitable organizations to pool efforts in fundraising and support.
The Red Cross is a nonprofit organization that was founded to protect human life and health, ensure respect for all human beings, and prevent and alleviate human suffering.
NAACP (The National Association for the Advancement of Colored People) is a nonprofit civil rights organization in the United States, formed in 1909 to fight for justice for African Americans.
Sienna Company uses the FIFO cost flow assumption. Sienna has inventory with a selling price of $100, packaging costs of $5, and transportation costs of $10. Sienna's normal profit margin is $20. However, due to limited supply of the product from the manufacturer, it would cost Sienna $80 to replace the inventory. What amount should be used as the market value?a. $ 65b. $ 80c. $ 85d. $ 100
Answer: $85
Explanation:
The following information can be gotten from the question:
Selling price = $100
Less: Packaging cost = $5
Less: Transportation cost = $10
Ceiling price = $100 - $5 - $10 = $85
Net profit = $20
Floor price = $85 - $20 = $65
In this scenario, the replacement cost of the inventory is higher than the floor price of $65, therefore the market value should be $85.
Paradise Corporation Budgeted on an annual basis for it fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Raw materials 55,000 Finished goods 95,000 Ending inventory raw material 65,000 Finished goods 65,000. Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 555,000 units during next year, the number of units it would have to manufacture during the year would be:________. a. 500,000 units b. 555,000 units c. 585,000 units d. 525,000 units.
Answer:
d. 525,000 units.
Explanation:
The computation of the number of units manufactured during the year is shown below:
= Number of units sold + ending finished goods inventory - beginning finished goods inventory
= 555,000 units + 65,000 units - 95,000 units
= 525,000 units
hence, the correct option is d. 525,000 units
We simply applied the above formula so that the correct value could come
And, the same is to be considered
QUESTIONS
1. Explain how the procurement process is handled by the city of Copenhagen
Answer:um
Explanation:
Which of these is an important factor in the paid search auction system?
AHow famous your brand name is
BHow cool your logo is
CHow long your business has been around
DHow relevant your ads are
Answer:
DHow relevant your ads are
Thank you and please rate me as brainliest as it will help me to level up
How relevant your ads are is an important factor in the paid search auction system. Hence, option D is correct.
What is auction system?An auction is a method of purchasing goods or services by putting them up for bids, allowing people to enter bids, and selling to the highest bidder. As the bidders compete with one another, each bid is higher than the one before it.
Animals can be bought and sold at livestock markets, artwork can be bid on in an auction room at Sotheby's or Christie's, and cars can be bought and sold at auto auctions. On the well-known online marketplace eBay, online auctions are regularly held.
The most common kind of auction is probably the open ascending price auction, which has been used historically.
Thus, option D is correct.
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On January 1, 2019, Chin Corporation issued $3,400,000, 16%, 5−year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $3,619,600. The market rate of interest for these bonds was 14%. Under the effective−interest method, what is the interest expense for the six months ending July 1, 2019?
Answer:
$253,372
Explanation:
Face Value = 3,400,000
Issue Price = 3,619,600
Bond Premium = 219,600
Jan 01, 2019
Balance in Bond Payable = 3,400,000
Book Value of Bonds = 3,619,600
Balance in Bond Premium = 3,619,600 - 3,400,000 = $219,600
30 June, 2019
Interest Payment = Balance in Bond Payable Jan 1 * 16%/2 = 3,400,000 * 14%/2 = $272,000
Interest expenses = Book Value of Bonds Jan 1 * 14%/2 = 3,619,600 * 14%/2 = $253,372.
Thus, the interest expense for the six months ending July 1, 2019 is $253,372
A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. Blank 1. Fill in the blank, read surrounding text. -12.38 % is the percentage change in the price of this bond if the yield to maturity rises to 6% from the current yield to maturity of 4.5%?
Answer:
The answer is "12.38 %".
Explanation:
Please find the complete question in the attached file.
Price of face [tex]= \$ \ 1,000[/tex]
Yearly Coupon Rate [tex]= 5 \%[/tex]
Yearly Coupon [tex]= \$ \ 1,000 \times 5 \%[/tex]
[tex]= \$ \ 50[/tex]
Maturity time [tex]= 12 \ years[/tex]
Bond yield [tex]= 4.5 \%[/tex]
Price [tex]= \$ \ 50 \times PVIFA(4.50 \%, 12) + \$ \ 1,000 \times PVIF(4.50 \%, 12)[/tex]
[tex]= \$ \ 50 \times \frac{(1-( \frac{1}{1.045})^{12})}{0.045} + \frac{1,000}{1.045^{12}}\\\\= \$ \ 1,045.59[/tex]
Returns shift to [tex]6 \%[/tex]
Price [tex]= \$ 50 \times PVIFA(6 \%, 12) + \$ 1,000 \times PVIF(6 \%, 12)[/tex]
[tex]= \$ 50 \times \frac{(1-(\frac{1}{1.06})^{12})}{0.06} + \frac{1,000}{1.06^{12}}\\\\= \$ \ 916.16[/tex]
Shift in prices:
[tex]= \frac{(\$ \ 916.16 - \$ \ 1,045.59)}{\$ \ 1,045.59} \\\\ = -12.38 \%[/tex]OR [tex]=12.38 \%[/tex]
Required information Exercise 6-9A Record transactions using a perpetual system (LO6-5) Skip to question [The following information applies to the questions displayed below.] Littleton Books has the following transactions during May.
May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30.
May 3 Pays cash for freight costs of $200 on books purchased from Readers.
May 5 Returns books with a cost of $400 to Readers because part of the order is incorrect.
May 10 Pays the full amount due to Readers.
May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,000 on account. Exercise 6-9A
Required: 1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Littleton Books
Journal Entries:
May 2 Debit Inventory $3,300
Credit Accounts Payable (Readers Wholesale) $3,300
To record the purchase of books on account, terms, 1/10, n/30.
May 3 Debit Freight-in $200
Credit Cash Account $200
To record the payment of freight costs for books purchased from Readers.
May 5 Debit Accounts Payable (Readers Wholesale) $400
Credit Inventory $400
To record the return of books.
May 10 Debit Accounts Payable (Readers Wholesale) $2,900
Credit Cash Discount Received $29
Credit Cash Account $2,871
To record the settlement of account.
May 30 Debit Accounts Receivable $4,000
Credit Sales Revenue $4,000
To record the sale of books on account.
May 30 Debit Cost of goods sold $2,900
Credit Inventory $2,900
To record the cost of goods sold.
Explanation:
The journal entries in Littleton Books' accounting records show the accounts to be debited and credited as they occur on a daily basis.
A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is:___________.
a. $10,000
b. $9,550
c. $10,300
d. $450
Answer:
c. $10,300
Explanation:
The computation of the maturity value of the note is shown below:
Maturity value of the note = Face value + interest for 90 days
= $10,000 + $10,000 × 12% × (90 days ÷ 360 days)
= $10,000 + $300
= $10,300
We simply added the face value and the interest for 90 days so that the maturity value would come
Hence, the correct option is c. $103,00
We simply applied the above formula so that the correct value could come
And, the same is to be considered